Commercial Lease Buyout vs Sublease Cost Calculator

Use Commercial Lease Buyout vs Sublease Cost Calculator to compare your own inputs, inspect the method and review an editable planning scenario.

Free · Editable · No account needed

Inputs

Example only: replace rates with your own figures.

Results

How to use

Start with the worked example to understand the inputs, then replace every relevant value with your own figures. Use one currency and consistent units throughout. Add or remove rows where offered; irrelevant conditional fields are disabled and excluded. Select Calculate after editing. Review negative values and any “not determined” result rather than assuming every scenario must be profitable. Download a text summary or print the page for your records.

Formula and assumptions

Compare the cash cost of a quoted lease buyout with subleasing the remaining term. Sublease loss equals contractual rent for all remaining months minus subtenant receipts after broker commission, plus legal/setup costs. Vacancy months produce no sublease income. Rent and subrent are constant in this model. The monthly table allocates commission across receipts for clarity; a real broker may collect it upfront. No discounting, default risk, rent escalation, deposits or legal permission is inferred. Check the lease and actual buyout terms before relying on the comparison.

sublease loss = months × contractual rent − max(months−vacancy,0) × subrent × (1−broker rate) + setup

Worked example

Example only: replace rates with your own figures.

Inputs
  • Remaining lease months: 24
  • Monthly contractual rent: 2000
  • Monthly subtenant rent: 1500
  • Vacancy before sublease starts: 2
  • Broker fee on total sublease rent: 5 %
  • Sublease legal and setup costs: 1000
  • Landlord buyout quote including costs: 15000

Frequently asked questions

Are the example rates current market prices?

No. Example inputs demonstrate arithmetic, not live prices, tax rules, salary surveys or sponsor benchmarks. Enter a dated quote, bill, manufacturer specification or verified fee schedule that applies to your situation. Compare a conservative and an optimistic scenario separately.

Why is a result not determined?

Some calculations have no meaningful value when a denominator is zero, savings are non-positive, a target cannot be reached or your data do not bracket an intersection. The tool leaves that result undetermined instead of displaying infinity or inventing a recommendation. Check the method and your inputs.

Sources

Sources explain the underlying concepts, not an endorsement of this website or its results. Method review: 20 October 2026.

Related tools